After January's already-exceptional performance, stocks began February modestly higher. These same gains muted worries that China and the U.S. would not reach a trade agreement by March 1st.

Mixed Signals

A weak December retail sales number sent a surge of anxiety through investors, feeding concerns that slowing economic data may be pointing to a slowdown. But investors quickly shrugged off the news and focused on an improved outlook for trade negotiations, a rally in oil prices, and the diminished likelihood of another federal government shutdown.

Stocks extended their gains as the month wore on. The markets welcomed news released by the Federal Open Market Committee (FOMC), which confirmed that the Fed governors had adopted a “wait-and-see” approach on future interest rate hikes.

Yahoo Finance, February 28, 2019. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.

What Investors May Be Talking About in April

The current economic expansion reached the age of 104 months in February, making it the third-longest expansion in U.S. history. By May 2019, it will become the second-longest stretch of economic growth on record.3

To gain a better understanding of what may lie ahead for economic growth and corporate earnings, investors may want to keep an eye on overseas markets.

Growth Rates

In the three largest economic zones outside of the U.S. -- the European Union (EU), Japan, and China -- economic growth rates are trending lower. In the EU, for example, the European Commission recently reduced its Gross Domestic Product growth rate estimate for 2019 to 1.5 percent, from 1.9 percent in 2019.4, 5

Economic conditions abroad can impact on U.S. firms, since 29 percent of all revenues generated by S&P 500 companies are attributable to overseas markets. 6

World Markets

Progress in trade negotiations between the U.S. and China boosted international stocks, leading to a gain of 2.62 percent in the MSCI-EAFE Index for February.7

Yahoo Finance, February 28, 2019. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Indicators

Gross Domestic Product

Exceeding expectations, the economy grew at an annual rate of 2.6 percent in the fourth quarter. However, this 2.6 percent increase was a deceleration from prior quarters in 2018. Economic activity was held back by a slowdown in consumer spending, even as business investment and exports grew.10

Retail Sales

Industrial Production

Pulled down by a drop in vehicle production, industrial production fell 0.6 percent from the prior month.13

Housing

Housing starts fell by 11.2 percent in December, touching levels not seen in more than two years. 14 Sales of existing homes slid 1.2 percent in January, falling for the third consecutive month. Relative to January 2018, sales were lower by 8.5 percent.15 New home sales reports were delayed into March due to the backlog caused by the federal government shutdown.

Consumer Price Index

Prices for consumer goods were unchanged in January, held down by a decline in energy costs. Year-over-year, inflation was 1.6 percent.16

Durable Goods Orders

Durable goods orders increased 1.2 percent in December, closing out the year with an 8.1 percent jump from 2017 levels.17

The Fed

The Fed decided at January’s FOMC meeting that it would stop the unwinding of its balance sheet later in the year.

Meeting minutes also confirmed that officials would place a pause on its earlier interest rate hike plans; though the committee was split on whether another rate hike would be implemented in 2019.18

By the Numbers

Digital Security

Facebook19

Most popular social networking app in the United States

Instagram19

Second-most popular

169 million19

Number of Facebook users in 2018

117 million19

Number of Instagram users

83 million 20

Number of people living in Germany

1,57919

Total number of data breaches in the U.S. in 2017

179 million 19

Total number of records stolen

$92 billion 19

Size of the global information security technology market

$56 billion20

Size of the total economy of Uruguay

10% per year 19

Percentage growth expected in the industry between now and 2022

12345619

Most common password unscrambled from the 2012 LinkedIn.com data breach

753,00019

Number of LinkedIn users with this password

linkedin19

Next most-commonly used password

173,00019

Number of users with this password

69 days22

Number of days it takes to contain a breach once it has been identified

$36,000 to $50,00021

Average cost of a data breach for small businesses

$86,50021

For medium-sized businesses

$14121

Average cost per compromised record

197 days22

How long it takes, on average, to figure out a breach has occurred

80%23

Percent of people who reuse their passwords across multiple services

15023

Number of passwords the average person has

23%23

Percent of employees who use their social media credentials to log into systems at work

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance.

The forecasts or forward-looking statements are based on assumptions, may not materialize and are subject to revision without notice.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

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The content is developed from sources believed to be providing accurate information.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals
for specific information regarding your individual situation. Some of this material was developed and produced by
FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named
representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and
material provided are for general information, and should not be considered a solicitation for the purchase or
sale of any security.

This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed.